U.S. Treasury awards contract to AT&T

The U.S. Treasury Department has announced that it has awarded a contract worth potentially $1 billion to build a next-generation network.

This is the first contract awarded by the U.S. government under the multi-billion dollar telecommunications contracting program known as Networx Universal, according to AT&T, Inc.

The three carriers selected to compete for the Networx business include AT&T, Verizon Communications and Qwest Communications International, Inc. These carriers can sell Internet services and voice and data services to potentially 135 U.S. government agencies.

The network to be built is known as the Treasury Network (TNet), which combines voice, video and data into a single system. Under the TNet order, AT&T announced that it will provide voice, data and Internet services and build a network to support more than 100,000 employees at more than 1,000 locations.

The initial contract order is for $270 million and is valid for ten years. It could be worth up to $1 billion with enhanced services and other options over the 10-year span of the contract.